Onion prices in the UAE hit record high.


Gulf News, 22-12-2010 05:06:41


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Dubai: Onion prices in the UAE have reached a record high as the supply of the highest in demand Indian variety has come to a halt.

The cost of one kilogramme of onions was approximately Dh 1.65 in the month of July. The same now costs up to Dh 4.95.

The Indian government on Monday banned the export of onions after the price of them in Indian cities more than doubled in two weeks time. The export ban was put in place to overcome the domestic shortfall of onions due to unusually heavy rains in areas where they are cultivated, officials had announced.

Prices in the Indian domestic market are hovering between 50 to 80 rupees (Dh6.50) per kilogram, as compared to 10 to 15 rupees last year.

Meantime in the UAE, Pakistani onions have been stocked up by retailers to meet the demand. The Pakistani variety was being sold for Dh3 earlier. In place of the Indian variety, it is now being sold for prices up to Dh4.95.

With Monday’s ban, there is speculation that the suppliers may hike the prices further for the Pakistani variety, retailers told Gulf News.

"Indian onions are undoubtedly the highest in demand in the country," the retailer said.

Onion prices: Month Average price of onion per kilogram

July - August: Dh 1.65

September - October - November prices hovered between: Dh 2.65 to Dh 3.95

December: Dh 4.95

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